Debt consolidation may be an option for some people.
The problem I have is the amount of education and discipline of those who are getting the consolidation..
One of the main things that happened to create the credit crisis was that people kept consolidating their loans into their mortgages until they couldn't afford the payments any longer.
IE... they kept racking up their credit cards, and then consolidating them into their mortgage based on rising real estate costs. Once the credit cards were paid off, they would start running them up again with new purchases.
If you can manage your credit properly and with discipline and debt consolidation saves you money, then it's a good idea.